New Home Buying Scheme For 2013

The Chancellor George Osborne has announced new plans to help people to buy their own homes. The Help To Buy Scheme offers even more help than the previous First Buy Scheme.

Under the new scheme buyers will be able to put down a 5% deposit for purchasing new build properties. Up to 20% of the cost of the home is funded by a “shared equity” loan, which will be repayable when the home is sold and will be interest-free for the first five years.
After the first five years borrowers will have to pay a 1.75% annual fee, which will then rise by 1% above the Retail Prices Index (RPI) measure of inflation and the remainder is paid for with a standard mortgage.

Whereas the previous scheme was only open to first-time buyers, this one will be available to all buyers of newly built homes. Previously there was also an income limit of £60,000 a year, but this will no longer apply.

The new scheme covers all newly built homes up to the value of £600,000 and borrowers will be able to apply from 1 April 2013.

For further information please contact Waheeda Alli on (0116) 2999199